DoD awards $44.9M to Boeing for aircraft parts, raising concerns over sole-source procurement
Contract Overview
Contract Amount: $44,942,272 ($44.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-05-11
End Date: 2022-07-18
Contract Duration: 433 days
Daily Burn Rate: $103.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8508172358!PBL MATERIAL BOEING
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $44.9 million to THE BOEING COMPANY for work described as: 8508172358!PBL MATERIAL BOEING Key points: 1. Significant contract value awarded to a single large corporation. 2. Lack of competition raises questions about price reasonableness. 3. Potential for taxpayer overpayment due to sole-source award. 4. Focus on aircraft parts manufacturing within the defense sector.
Value Assessment
Rating: questionable
The contract value of $44.9M is substantial. Without competitive bidding, it's difficult to assess if this price is reasonable compared to similar aircraft parts contracts. Further analysis of the specific parts and market rates is needed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The lack of competition in this sole-source award could result in taxpayers paying more than necessary for these aircraft parts.
Public Impact
Taxpayers may be overpaying for essential aircraft components. Limited visibility into the pricing justification for this large award. Potential impact on the broader defense supply chain due to concentrated award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Award to established defense contractor
- Addresses critical defense needs
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the defense industrial base. Spending in this area is often substantial, but competitive sourcing is key to efficiency.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor, and there is no indication that small businesses were involved in this specific award. This limits opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure fair pricing and justification. Transparency in the procurement process is crucial for accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source procurement
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in award justification
- No small business participation indicated
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.9 million to THE BOEING COMPANY. 8508172358!PBL MATERIAL BOEING
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $44.9 million.
What is the period of performance?
Start: 2021-05-11. End: 2022-07-18.
What specific aircraft parts were procured under this contract, and what is the justification for the sole-source award?
The contract is for 'PBL MATERIAL BOEING' and falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. The justification for the sole-source award is not detailed in the provided data. Typically, sole-source awards are justified by factors such as unique capabilities, urgent needs, or lack of viable alternatives. Further investigation into the specific parts and the rationale behind not seeking competitive bids is necessary to assess value.
What is the risk of overpayment given the sole-source nature of this $44.9M contract?
The primary risk of overpayment stems directly from the sole-source award. Without competition, there is no market pressure to drive down prices. The government relies on the contractor's proposed pricing, which may not reflect the lowest achievable cost. This increases the likelihood that taxpayers are paying a premium for these aircraft parts, necessitating robust price analysis by the contracting agency.
How effective is the Department of Defense in ensuring competitive pricing for aircraft parts?
The effectiveness varies. While the DoD has policies encouraging competition, sole-source awards like this one indicate instances where competition is bypassed. The Defense Logistics Agency's reliance on sole-source procurement for certain parts suggests potential challenges in identifying competitive sources or specific justifications for avoiding it. Continuous monitoring and analysis of procurement methods are needed to gauge overall effectiveness in achieving competitive pricing.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,942,272
Exercised Options: $44,942,272
Current Obligation: $44,942,272
Actual Outlays: $24,395,584
Subaward Activity
Number of Subawards: 35
Total Subaward Amount: $4,646,427
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRPA114D002U
IDV Type: IDC
Timeline
Start Date: 2021-05-11
Current End Date: 2022-07-18
Potential End Date: 2022-07-18 00:00:00
Last Modified: 2022-09-15
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)